CORP FIN MODELING 1
CORP FIN MODELING 1 FIN 6930
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This 2 page Class Notes was uploaded by Roosevelt Romaguera on Friday September 18, 2015. The Class Notes belongs to FIN 6930 at University of Florida taught by Staff in Fall. Since its upload, it has received 33 views. For similar materials see /class/206606/fin-6930-university-of-florida in Finance at University of Florida.
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Date Created: 09/18/15
June 2005 Hold IWIEIRTsAS Northstar Capital Quality Growth Firm Highlights Founded 2000 Total Staff 12 Northstar Capital Management Firm AUM as of 33105 512M Investment Staff 6 4400 PGA Boulevard Suite 600 Product AUM as of 3 31 05 209M Avg of Holdings 2535 Palm Beach Gardens FL 33410 Ownership Private Avg Turnover 70 Performance Overview 0 MRQ YTD 1 Year 3 Years 5 Years 10 Years 2004 2003 2002 2001 2000 Northstar Capital 815 519 215 51 363 1227 1838 177 2324 135 205 Russell 1000 Growth 408 135 116 69 1128 815 63 298 2788 204 224 Excess 407 381 99 12 765 412 1208 121 464 69 2445 Firm Overview Northstar Capital Management is a very small player in the large cap growth universe The investment team has been in place since 1992 working as a separate entity with Loomis Sayles however during a 2000 restructuring the partners purchased the rm from Loomis and created Nor thstar Assets have declined slightly from 275M at the end of 1999 to 209M as of March 31 2005 mainly due to performance Client base is comprised of both highnet worth individuals and institutions Large Cap Growth Managers have capacity of well over 5B and therefore capacity constraints should not be incurred in the near future Personnel Overview Nor thstar Capital Quality Growth is managed by an investment committee comprised of 4 individuals Kent Mergler has been Chairman and a Portfolio Manager since 1992 with other members of the committee serving dual roles as both portfolio managers and analysts Of the ve portfolio managers two have been hired in the past two years with one individual also serving on the investment committee The analysts serve as generalists thus allowing each of them to have knowledge of every company being analyzed Performance Synopsis Northstar Capital tends to underperform in major up markets and outperform in major down markets Their focus on large well established companies leads to longterm riskadjusted out performance versus the Russell 1000 Growth index They exhibit almost no style drift but high turnover does not lend to a tax ef cient strategy Additionally while they tend to outperform versus the index in negative quarters there is a lack of consistency when looking at statistics such as beta alpha and batting average Strategy Synopsis The Investment Decision Process places great emphasis on quantitative screening using data published from major public databases They look at factors including past and projected EPS growth PEG ratios and ROE Following the quantitative screens the investment team will look at Street research to analyze the qualitative side While quantitative screens can be an effective tool for sorting through large cap growth companies extensive internal research is necessary to uncover hidden value Nor thstar Capital does not perform any internal research instead relying research from the major Wall Street frrms Such a research approach does not lend itself towards producing alpha in the sideways market that we currently face Additionally portfolio decisions can be made on the opinions of less than the full agreement by all members Furthermore there is no formal thesis written for investment decisions and thus no basis for future revaluation of investment decisions With an average turnover of approximately 50 per year Northstar tends to invest in companies they have not been following for very long holding an average investment for 2 years and therefore potential value may be lost in the sell decision Integritas Advisors 340 Royal Palm Way Suite 101 Palm Beach FL 33480 561 837 8051 wwwintegritasadvisorsc0m